How automation will benefit the legal industry

Technology has long
promised to eliminate tedious duties and free your staff to focus on higher-value
tasks – but it often fails to deliver.

This looks set to
change with the advent of Robotic Process Automation (RPA) – sophisticated
software ‘robot’ technology that has now advanced to the point where adoption
in the workplace is practical. So much so that multinationals like Walmart,
Deutsche Bank, AT&T, Ernst & Young and American Express have all
incorporated RPA into their operations.

For the legal
profession, which still sees a high reliance on paper documents, and which can
involve significant research and information gathering, the case for automation
and digitisation is compelling. Document automation and other
technology-enabled tools can offer significant time savings and operational
efficiencies.

What is Robotic Process Automation?

RPA is a type of
virtual workforce – or business process automation technology – that uses
software or ‘bots’ to replace manual high-volume or repetitive tasks. RPA is
especially suited to performing repetitive back-office production processes and
IT operations, like processing transactions, manipulating data and responding
to communications.

In short, it helps get
more work done in less time and at a lower cost than using human workers. This
type of software-powered ‘digital labour’ is now cheaper, faster and more
productive than traditional approaches, including offshoring. This is why companies
in other industries have already implemented RPA in a range of low-value
repetitive tasks, including processing transactions, searching for and
manipulating data, and responding to communications.

RPA is also being
‘supercharged’ with artificial intelligence (AI) capabilities like natural
language processing. This more advanced implementation, also known as intelligent
automation (IA), promises to have the same judgement capabilities as humans.

The benefits of pivoting to RPA

Some of the more
obvious benefits of pivoting to RBA include:

Freeing up human capital to refocus on
high-value tasks

Mitigating risk and minimising human error

Improving manual processes – specifically
their speed and accuracy

Providing faster access to information

Reducing the admin workload for staff

Ensuring compliance in highly regulated
sectors

For good reason, the
accuracy and enhanced compliance has made RPA popular in highly regulated
industries like banking, healthcare, insurance and legal sectors. This is not
to say it can entirely replace humans, however, as the algorithms are designed only
to solve specific problems or tasks.

RPA: The use case for law firms

Practical applications include using document scanners coupled with Intelligent Character Recognition (ICR) and Optical Character Recognition (OCR) technologies than can digitise physical documents and automate filing. RPA ‘bots’ can even read contracts, apply contract terms and compare records across multiple applications.

Another practical
application of the technology is helping to effectively assess the risk of
taking on a new client – with bots assessing their credit rating and fiscal
standing. This can also be extended to determine the opportunity cost of
committing to a case, with RPA calculating
the total number of hours the case is likely to require.

In all scenarios a
human can assess the findings, adjustment parameters and assumptions, and make
the final call. However, RPA can also help reduce human error – including
improved accuracy on filing and naming, and the overall service law firms
provide their clients.

How much can you save with RPA?

There are significant
savings to be had by introducing RPA into your practice, firm or operation.

Cloud computing
provider Appian calculates cost savings of anywhere from 25 to 40 per cent, an
impressive figure given that traditional business outsourcing models generally
amount to a 5 to 10 per cent saving. Professional services network PwC
maintains that RPA can quickly deliver ROIs of 300–800 per cent, 24/7 productivity
(with one bot replacing up to three workers) and 100 per cent accuracy on
automated cases.

It does, however, need
to be correctly implemented to realise a strong return on investment.

Implementing RPA: how to get it right

As with any new
technology or application, successfully implementing RPA requires careful
planning and consultation. Bear in mind that generally RPA is applicable to
rule-based, repetitive processes, so set realistic expectations and be prepared
for teething problems.

Look to build
awareness among your staff of RPA and its benefits, as well the potential
impacts, well in advance of deployment. This will help reduce the inevitable
anxiety that often accompanies the adoption of a new technology and smooth the acceptance
of RPA in your firm.

Also be aware that RPA
will not fully replace all human roles, but staff should have more time to
focus on higher-value tasks and functions.

The benefits of
applying RPA to select support processes in a law firm can help streamline
business operations and accelerate service delivery. This, together with the
prospect of improved compliance and an enhanced customer experience, makes
pivoting to the technology a compelling option.